Miami’s residential real estate market has cooled off significantly over the last year. But it’s not crashing and that’s a sign of stability, according to a quarterly report from brokerage Douglas Elliman and New York-based Miller Samuel Real Estate Appraisers & Consultants.

“This market has never had stability,” said Jay Parker, Florida CEO of Douglas Elliman, of the region’s perennial boom-and-bust cycles. “We have gone through tremendous growth over the last few years. It’s just natural that it will start to calm at that point. ... But it’s not leading to an implosion. It’s leading to a market that is more sustainable.”

We’re shifting to a buyer’s market, and sellers may have to adjust their expectations.

Jay Parker

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The report found that in the second quarter of 2016, the number of home sales fell 25 percent in Miami Beach and the barrier islands compared to the previous year. In greater downtown Miami and its major suburbs, sales were down 12.5 percent annually. Even so, they stayed above historical averages.

The sales slowdown is mainly the result of a strong dollar and weak economies abroad. After the recession, foreign buyers took advantage of a struggling dollar to scoop up Miami real estate, fueling a frenzied boom. Now that the currency situation has reversed, they can’t compete at the same level.

Broward and Palm Beach counties, which rely less on foreign buyers, generally did better, the report found.